PSEB to help PSX list more IT firms

ISLAMABAD: Pakistan Software Export Board (PSEB), the attached department of Ministry of IT & Telecom, will soon sign a Memorandum of Understanding (MoU) with Pakistan Stock Exchange (PSX) to ensure sustainable growth of IT industry in the country, a statement said on Friday.

The PSEB in its handout said the MoU would be the first-ever between the board and the apex bourse and was aimed at increasing the number of listed technology companies on the PSX Main Board & GEM Board.

It said this would in turn help strengthen the financial ecosystem for IT sector growth and build a strong brand image of Pakistan’s IT industry in the international markets.

There are significant benefits for Pakistani technology companies to list on the stock exchange. By listing on the stock exchange, a company gains instant credibility and stature with prospective clients and suppliers.

This is a significant advantage particularly for Pakistani tech companies as it makes it easier to solicit overseas customers due to the increased credibility that comes from being listed on a reputed platform such as the Pakistan Stock Exchange.

Listing on the stock exchange also improves corporate governance, and companies can maintain more autonomy and control through the ability to rapidly raise low-cost capital compared to banks, venture capitalists, or private investors.

Commenting on the development, Managing Director PSEB Osman Nasir said, “One of the main factors impeding the growth of Pakistan’s IT sector is access to capital. Pakistani tech companies that get listed on a Pakistan Stock Exchange would be able to raise funds by issuing more shares which can subsequently be used for further business expansion”.